This book uses newly collected data with nearly 2000 observations across Africa and Latin
America of SME owner operators to examine if psychometric tools can distinguish the good ones
from the bad ones. This book fully describes the development problem and how psychometric tools
can help solve it. Moreover it presents and develops the unique statistical methodologies to
deploy psychometric tools for credit screening. This will be the single complete publication of
the work to date by the entrepreneurial finance lab created by Klinger & Khwaja. This work
started as a research project at Harvard University's center for international development
with funding from Google.org. This work is very high profile winning the G-20 SME Finance
Challenge in 2010 (global open competition to identify the best scalable solutions to unlocking
SME finance- winners honored at the G-20 summit in Seoul Korea and receiving significant
funding from G-20 countries for the implementation of their models).
